ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to ADOPT an ORDINANCE providing for the ISSUANCE of one or more series of GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016B, of the City of Peoria, Peoria County, Illinois, in an Aggregate Amount Not to Exceed $23,000,000 to Refund Certain Outstanding Bonds of said City, Providing for the Levy of a Direct Annual Tax Sufficient to Pay the Principal of and Interest on Said Bonds, Authorizing and Directing the Execution of an Escrow Agreement in Connection with the Issue of Said Bonds, and Authorizing the Sale of Said Bonds to the Purchaser Thereof.
Body
BACKGROUND: On occasion, under the recommendation of our financial advisors, Speer Financial, Inc., the City has refinanced bond issues that would result in significant savings in debt service. Speer Financial, Inc. has determined that significant savings in debt service will be realized as a result of refinancing the General Obligation Library Bonds, Series 2008 A. The General Obligation Library Bonds, Series 2008 A will be refunded on a negotiated basis with Mesirow Financial, Inc. This ordinance authorizes the Designated Officials (Mayor, City Clerk, City Treasurer, City Manager and Finance Director/Comptroller to sell refunding bonds upon achieving savings in excess of four and one-half percent (4.5%) of the amount of the 2008 A Bonds.
The authority granted in this Ordinance for the Designated Officials to sell refunding bonds will expire August 23, 2016 without any further authorization or direction from Council, to sell bonds based upon terms as prescribed in this Ordinance.
The attached Ordinance provides for the issuance of general obligation to be issued in a principal amount not to exceed $23,000,000. An escrow account will be established and proceeds from the refunding issue will be invested in State and Local Government Series (SLGS) securities or treasury securities which ever provi...
Click here for full text